- Join over 1.2 million students every month
- Accelerate your learning by 29%
- Unlimited access for just £4.99 per month
What problems have prompted countries of Eastern Europe to move towards a more market orientated economic system?
The first 200 words of this essay...
Year 12 Economics Essay
a) What problems have prompted countries of Eastern Europe to move towards a more market orientated economic system?
b) What problems have these countries encountered in the transition?
Economies try to solve the basic economic problem that exists in the marketplace. Scarcity of resources in a world of infinite human wants. This causes the basic economic problem; resources have to be allocated between competing uses. To solve the problem the Government has to decide what will be produced, how will it be produced and for whom will it be produced. The answers to these questions depend on what economic system a government decides to operate.
Countries in Eastern Europe wanted to move towards a more mixed economy which is a combination of market economies and command economies. In a command economy resources are allocated by the Government through careful planning. This means that the four factors of production (land, labour, capital and enterprise) are all controlled by the State. In market economy the government makes no economic decisions. These are made through the market which is the interaction between consumers and businesses.
In a command economy goods
Found what you're looking for?
- Start learning 29% faster today
- Over 150,000 essays available
- Just £4.99 a month
Not the one? We have 100's more
Economy & Economics (view all)
- The Advantages and Disadvantages of a Command Economy or Fre...
- Explain the main factors which might determine the elasticit...
- How does the Government use fiscal policy to influence the e...
- What happened to the income of taxi drivers, and fares paid ...
- EXPLAIN AND DESCRIBE THE CHARACTERISTICS OF ECONOMIC ACTIVIT...
- Describe the Advantages of a Market Economy
- Exchange Rates and their Effect on Morocco Report.
- The Potential Impact of Government Policies on My Business P...
- China and Economic growth, Case Study
- Research the Causes of financial crisis in 2008 & 2011 a...
""Zoia, London. GCSE Student. 'English, Science, RE, Geography, History.'
""Nikolay. Business Studies. BTEC Student.